Will Solana (SOL) Develop into the Next EOS and Disappear?
Major layer 1 blockchains Solana and EOS , both renowned for their fast theoretical transaction speeds and focus on dApp development. In addition to this commonality, interested users should take additional factors into account to more clearly differentiate the two blockchains. In terms of consensus techniques, tokenomics, scalability, and recent user/developer engagement, Solana and EOS are different from one another. Unfortunately, decentralization is a problem for both blockchains.
Since transaction speeds are ultimately relative, it is vital to estimate how safe and error-free the transactions are likely to be before deciding whether a protocol is “faster” by looking at the TPS. Ethereum, a now-PoS-based chain, can handle an average of 21 TPS, while Bitcoin, the most secure PoW-based protocol, has an average TPS of 7. These transaction speeds are a result of the tokens’ low availability and great demand. On these networks, transaction and gas fees might be quite high due to the demand-induced congestion.
To grow its blockchain, Solana openly depends largely on hardware developments. The Solana team is placing its bet on Moore’s Law, which states that even if this relationship has appeared to be slowing down over the past five years, the computer hardware market will continue to grow.
Scalability and more
Network scalability in the monolithic blockchain architecture is limited by the processing capacity of the lone weakest node. As a result, the chain’s performance is constrained by hardware/computer performance. For example, faster throughput is only possible with more expensive, performant technology. Solana is a great option on the performance-decentralization spectrum since as of Q4 2022, it had enough nodes (relatively) to establish a lightning-fast blockchain by today’s standards.
However, if adoption increases and Solana fulfills some of its dApp and DeFi promises, 1,000 or even 50,000 TPS won’t be enough. As a result, more advanced and costly hardware will be needed to operate the chain. In fact, Solana’s expansion makes it more challenging to uphold the same level of performance and decentralization assurances.
Solana is famous for its extremely low transaction fees ($0.00025) and high average TPS of more over 2,000. Solana speeds up the validation procedure using its “Turbine” technology. Leaders group transactions onto the “data plane,” where the remaining validators can validate the validity of the entry. The neighborhood’s validators communicate the data they get with each other validators there. Then, each node in a distinct neighborhood receives data from only one other node.
The majority of Solana transactions include voting and validator synchronization transactions, which is another factor contributing to the platform’s high TPS. On Solana, transactions are broken down into token transfers, consensus votes, and smart contract logic. Non-vote transactions are comparable to EVM transaction counts and show the network’s true economic activity. Regardless of any significant financial activity or adoption. If the number of validators on the network increases, so does the number of vote transactions.